Accounting for Vendor payouts and CC fees in a marketplace

jord8on

I run a business that allows Pros and other instructors/coaches (aka vendors) to use my platform to run clinics, lessons, camps, and other things like this where their students use my site to register. It's kind of like a marketplace where students can look at the various coaches and choose the one they like the best, and at the end of the day, all the registration/booking money comes to my account.

e.g. a clinic costs $60 and I get 12 people to sign up, so I receive a total of $720. Stripe charges me 2.9% + $0.30/transaction. I tell the pros that use my site that they will get 90% of their Gross revenue, which in this case is $648. I then use the 10% that I receive (or $72) to pay CC fees and whatever is left is revenue for my business.

What is the best way to account for this in Wave? I'm still kind of a novice with Wave so detailed instructions would be appreciated.

It's almost like what I'm wanting to do is a "reverse invoice" but since I have all the data of who signed up and how much was paid, I'm the one who knows how much I owe these Pros/vendors earned. So I have to parse out their revenue, my revenue, and the fees that I'm assuming by using Stripe/Paypal.

This is my first business so I'm not sure the best way to handle these arrangements in terms of accounting. I'd like to know (specifcally) the best way to manage and document all of this, in Wave.

Any ideas, fellow wavers?!

CallieP

Hey @jord8on , thanks for this message! What you'd want to do in this case is split the deposit transaction into part income, part expense.

• Head to Accounting > Transactions > Add an Income (or locate your already-uploaded income transaction)
• Make the Account your bank account that the funds were deposited into
• Make the Amount the net income after fees
• Below that, click 'Split this Deposit'
• Make one split Category your income account, e.g. Sales, and make the Amount of this split the gross income before fees
• Make the other split Category an expense account, e.g. Merchant Fees, and make the Amount of this split the fee amount. Since this account is an expense account, the amount will be negative.
• Click Save!